Tribe Capital Interested in Sponsoring FTX’s Revival Plan (Report)
Venture capital firm Tribe Capital is reportedly considering leading a $250 million fundraising campaign to support bankrupt crypto exchange FTX. Tribe Capital’s co-founder, Arjun Sethi, met with FTX’s committee of unsecured creditors to discuss the initiative, which is anchored by $100 million from itself and its limited partners. The native token FTT surged by 20% shortly after the report was released, reaching nearly $2.30. However, there is no definitive timetable for the revival or sale of the platforms at this time.
FTX filed for bankruptcy protection in November 2021 following severe liquidity issues and problems honoring customer withdrawal requests. Once valued at over $30 billion, FTX was among the leaders in its field before its demise, resulting in catastrophic losses for multiple investors. While attorneys and bankruptcy experts have recovered over $7 billion of assets owed to clients recently, FTX is now evaluating all options to reboot or sell its exchanges. The potential fundraising initiative by Tribe Capital could help FTX get back on track.
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